Netflix Plans Price Raise As Streaming Subscribers Grow

By DMO Affiliate

Video streaming service Netflix Inc said it intends to raise its subscription price for new customers by $1 or $2 a month to help the company buy more movies and TV shows and improve service for its 48 million global subscribers. Investors welcomed the announcement on Monday by Netflix, which had suffered from a consumer exodus and stock plunge after it announced an unpopular price increase in July 2011. The company's shares jumped 6.7 percent in after-hours trading to $371.97, after the company released plans for price hikes and posted a rise in first-quarter profit that beat Wall Street expectations.